CABINET OFFICE

Civil Service (Management Functions) Act 1992 (Delegations/Authorisations)

Jim Murphy: No such delegations or authorisations were made during 2005.

DEFENCE

QinetiQ Shareholder Team

John Reid: I am pleased to announce to Parliament the decision to float QinetiQ, formerly part of the Defence Evaluation and Research Agency (DERA), on the London Stock Exchange. This represents the next step in the Public Private Partnership for defence research, which was first announced in 1998 as part of the Strategic Defence Review. It is a significant achievement to have reached this stage five years after QinetiQ was first vested as a Government-owned company, and three years after the Carlyle Group became, through its minority stake, our strategic partner.
	The aims of the Public Private Partnership were to strengthen the linkages between defence and civil technologies, encourage the commercial exploitation of taxpayers' investment in science and technology and create a sustainable future for DERA and its staff, while retaining within Government those functions not appropriate to the private sector.
	Carlyle became our strategic partner in February 2003, following a competitive process that achieved the best possible deal for the taxpayer at that time. Through the introduction of private sector investment and expertise into the company, this partnership has enabled QinetiQ to build on its remarkable heritage to produce a strong trading performance, exploit its capabilities in the civil sector and develop a significant business in the US through its successful strategy of US acquisitions, while continuing to be a key supplier of cutting edge technology and services for our Armed Forces. For example, QinetiQ's rapid development of a new system to provide fast and safe ways of clearing mines from shallow waterways through the fitting of remote control technology to unmanned combat support boats has added to the capability of UK forces operating in Iraq. Its runway hazard detection system, Tarsier, developed from advanced radar research in the wake of the Concorde tragedy, has been trialled at some of the world's busiest airports and will shortly be protecting air travellers at Vancouver International Airport. The growth and development of the company, both in the UK and on a global level since our strategic partnership with Carlyle, has significantly increased its value and therefore the benefit to the taxpayer as its majority shareholder.
	Against this background, and informed by the advice of our joint financial advisors, the Government, Carlyle and the company itself judge that QinetiQ is now ready for the next stage in the process: an initial public offering (IPO). The Government believe that an IPO provides the best route for QinetiQ further to develop its excellence as a supplier of battle-winning technology to our armed forces while also creating new opportunities to exploit British technology in a global market. Subject to market conditions, our current intention is to complete the IPO during February.
	Following the IPO, both the Government and Carlyle will continue to retain a significant stake in the company reflecting our confidence in its future. The Government will also retain a special share in QinetiQ to protect the United Kingdom's defence and security interests.

Merlin Capability Sustainment Programme

Adam Ingram: I am announcing today the award of a contract to Lockheed Martin UK for the upgrade of the Royal Navy's Merlin Mk l helicopters. This upgrade, known as the Merlin Capability Sustainment Programme, is vital in keeping the Merlin Mk l effective until its planned out-of-service date in 2029. The contract, which includes upgrading the Merlin MK1 Training System, is valued at some £750 million and the first squadron of MCSP aircraft will enter service by September 2014. This contract award will help sustain some 1,400 high technology jobs across the UK mainly at Lockheed Martin in Havant and Agusta Westlands in Yeovil as well as in Smiths Industries, Thales UK, Selex and AeI.

DEPUTY PRIME MINISTER

Regulatory Reform (Fire Safety) Order

Jim Fitzpatrick: The Regulatory Reform (Fire Safety) Order (SI 2005 No 1541) was made on 7 June 2005.
	During the passage of the Order it was of concern to the House that business and enforcers should have adequate time to familiarise themselves with the new regime and the guidance that will accompany it and that the coming into force date should, so far as practicable, be timed to coincide as closely as possible with reform of fire safety laws in Scotland.
	Despite extensive work with stakeholders it is clear that all the guidance documents will not be ready for a full 12 week gap between publication and coming into force on 1 April 2006.
	In the light of the commitments we have given to the House and our commitment to ensuring this reform is properly backed, we have therefore concluded that the coming into force of the substantive provisions of the Regulatory Reform (Fire Safety) Order should be put back. We will therefore bring an Order, under article 52 of the Regulatory Reform (Fire Safety) Order 2005, to amend the coming into force date of the new regime before the House as quickly as possible.
	Hon. Members will also wish to note that the Scottish Authorities have determined that more time should be allowed for reform north of the border. The reform in Scotland is now expected to come into force in October 2006 at the earliest.

HOME DEPARTMENT

Asylum Applications

Tony McNulty: The Home Office (IND) have requested that a pilot scheme be undertaken by the International Organisation for Migration (IOM) to evaluate the effects that increased reintegration assistance may have on incentivising failed asylum seekers, and those who wish to withdraw any outstanding asylum applications or appeals, to return to their country of origin. Voluntary returns are always preferable to enforced returns. The pilot which began on 1 January will run for a period of six months.
	VARRP (Voluntary Assisted Return and Reintegration Programme) is the generic programme through which those who have made an asylum application can return to their country of origin with assistance. During 2004–05 there were 2,678 returns under VARRP. Between 1 April and 30 November 2005 there have been 2,236 returns and we are projecting returns in the region of 3,500 for 2005–06. The recent NAO report on failed asylum seekers recommended that more should be done to promote voluntary returns. IND and IOM have undertaken a significant amount of work to promote voluntary returns over the last 18 months, and this exercise will look at the levels of incentive required to stimulate return. It will also assist in developing the most appropriate level of incentive in future voluntary return programmes.
	Currently, VARRP provides all returnees with reintegration assistance to the value of £1,000. This assistance is provided in kind. This means that returnees are not provided with cash grants but are given help with starting up a small business, vocational training or education. All those who leave the UK under this scheme will be offered an additional £2,000 which they can choose to take as either additional re-integration assistance or cash grants. This offer will be available only to those who leave the UK between 1 January and 30 June 2006 and no-one who made an application for asylum after 31 December 2005 will be eligible for this. It is anticipated that such an offer could increase the number of predicted returns from about 1,950 to over 3,000 for the six month period.
	In order to promote this exercise the Home Office has undertaken a mailshot to all those currently on National Asylum Support Service support and is publicising the scheme to those who attend reporting centres and to those who are eligible in detention. IOM will also advertise the scheme through posters and advertisements.
	The additional cost of this scheme will be £6.2 million over six months if the increased assistance is paid to 3,000 volunteers.
	These additional costs represent good value for money against the cost of enforced returns which the NAO has calculated to cost £11,000 each on average. There are also significant potential savings in the provision of NASS accommodation, support costs and detention expenditure.

Private Security Industry (Approved Contractor Scheme)

Paul Goggins: Following public consultation during the autumn, the Government have decided to introduce an Approved Contractor Scheme (ACS) for the private security industry.
	The ACS will include elements from two of the options in the consultation paper: Option 3, which would require companies to possess one or more of a list of specified existing standards, and Option 4 which would introduce a new standard defined by the Security Industry Authority. These two options were the most popular in the consultation, with over 90 per cent. of respondents expressing a preference for one of them. By adopting a mixture of the two, we will enable those firms that have already achieved an existing standard to take credit for that, without requiring smaller firms, in particular, to go through the same procedure.
	There is still a lot of detail to be worked through. The detail of the scheme, including the fee structure, will be announced as soon as possible, so that companies are able to plan and prepare for the implementation date. The detail of the ACS will be subject to annual review. Companies approved under the scheme will be permitted to deploy a small proportion of their security personnel who are not yet licensed but have completed training and have an application pending. They will not be able to deploy unlicensed personnel on assignments that involve contact with children or vulnerable adults. This will ensure that those dealing with this particularly sensitive group have undergone, and satisfied any SIA requirements relating to a Criminal Records Bureau check.
	The date on which it will become mandatory for manned guards to be licensed remains 20 March 2006. Licensing for door supervisors and vehicle immobilisers is already mandatory.

WORK AND PENSIONS

Buncefield Oil Depot Fire

Anne McGuire: The Health and Safety Commission (HSC) is today announcing the appointment of the right hon. Lord Newton of Braintree as the independent chairman of the board supervising the investigation into the incident at the Buncefield oil depot on 11 December 2005.
	The investigation board, set up by the HSC under powers set out in Section 14(2)(a) of the Health and Safety at Work etc. Act 1974, will report to both HSC and the Environment Agency. As well as the board chair, it also includes two other independent members with relevant expertise: Professor Dougal Drysdale, one of the leading international authorities in Fire Safety Engineering and Dr. Peter Baxter, a consultant physician in occupational and environmental medicine. The board will also include three members of staff from the Environment Agency and HSE.
	The Commission will publish the special report produced by the Investigation Board.
	The HSC's decision to establish an investigation board highlights the severity of the incident and the degree of concern for people living close to the Buncefield site and to the local business community. It is determined to ensure the investigation is carried out thoroughly, objectively, transparently and concluded in a timely manner with its findings made public as soon as possible, subject to legal considerations.
	HSC is an independent body of 10 people, appointed by the Secretary of State for Department for Work and Pensions, after consultation with organisations representing employers, employees, local authorities and others. HSC's primary function is to make arrangements to secure the health and safety of workers and the public in the way work activities are conducted; including proposing new law and standards, conducting research and providing information and advice.